March 25 (Reuters) – JetBlue Airways has brought in advisers to assess the viability of a sale to a rival carrier, Semafor reported on Wednesday, citing people familiar with the matter.
Shares of the low-cost carrier rose 14%.
JetBlue has planned various scenarios on how potential combinations with United Airlines, Alaska Airlines, or Southwest Airlines would be viewed by policymakers in Washington, according to the report.
JetBlue had a market value of roughly $1.55 billion as of Tuesday’s close, according to LSEG data.
Reuters could not independently confirm Semafor’s report.
“We’ve made meaningful progress on our multi-year JetForward strategy and are focused on executing the plan,” JetBlue told Reuters in an email, referring to its long-term plan to improve financials.
“We’re confident JetForward is the right strategy to restore profitability and create value for our shareholders and opportunities for our crewmembers.”
Earlier this month, the airline said it is on track to deliver $850 to $950 million in incremental operating profit by 2027 due to its JetForward plan, which seeks to curb costs, expand its network and improve services for travelers over the long term.
In 2024, JetBlue called off its $3.8 billion merger with the struggling Spirit Airlines after a U.S. judge blocked the deal on anti-competition concerns.
Last year, JetBlue announced a partnership with United, allowing travelers to book flights on both carriers’ websites and interchangeably earn and use points in their frequent flyer programs.
Under the partnership, JetBlue also agreed to provide United access to slots at New York’s congested JFK International Airport for up to seven daily round-trip flights starting in 2027.
JetBlue is still in preliminary stages and could decide not to pursue deal talks with any rivals, the report said, adding that it could not be determined if the airline had held discussions or received indications of interest.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Leroy Leo)
Comments